N/ Assembly ready to review budget

Written by Daily Trust Friday, 28 May 2010

Minister of state for Finance Remi Babalola had on Monday disclosed that the Federal Government was proposing a review of the 2010 budget following the recent fall in the price of crude oil in the international market leading to decline in revenue accrued to the nation.

Chairman Senate Committee on Finance Senator Ahmed Mohammed Makarfi (PDP, Kaduna North) told Daily Trust that the review of the 2010 budget is appropriate.

Chairman House Committee on Appropriations Rep Ayoade Adamola Adeosuen (PDP, Oyo) said the challenge facing the budget passed was that of revenue and that nobody should be blamed for that because Nigeria has no control over the price of crude oil.

“The price of crude oil as at the time we passed the budget was $84 per barrel and National Assembly decided to peg the benchmark to $67. Today, the price has dropped to $69 per barrel so it does not make economic sense to leave the benchmark at $67. That why we are now willing to take a second look at the budget again due to the new economy realities in the world,” Adeosuen added.

Late President Umaru Musa Yar’adua had presented a budget proposal of N3trillion to the two chambers in November last year, which the lawmakers went ahead to increase the oil benchmark and jerked up the budget to N4.06 trillion naira.